Tag: Motley Fool

The Zip Co Ltd (ASX: ZIP) share price is having much-needed positive day.

In afternoon trade, the buy now pay later (BNPL) provider’s shares are up a massive 14% to 67.5 cents.

What’s going on with the Zip share price?

The catalyst for the rise in the Zip share price has been a rebound in the tech sector.

This rebound has been particularly strong among beaten down loss-making tech shares like Zip.

For example, the Life360 Inc (ASX: 360) share price is currently up 6%, the PointsBet Holdings Ltd (ASX: PBH) share price is up 9%, and the BrainChip Holdings Ltd (ASX: BRN) share price is up 12% at the time of writing.

This has driven the S&P ASX All Technology index 4% higher today.

What’s driving tech shares higher?

Investors have been piling into the tech sector on Wednesday following a very strong night of trade on the tech-focused NASDAQ index.

This was driven by optimism that markets have now bottomed and it is onwards and upwards from here.

Among the best performers on the NASDAQ index was the Affirm share price with a 9% gain. Investors appear to believe this BNPL share has been oversold and created a buying opportunity.

The same seems to be happening on the Australian share market with the Zip share price.

Quarterly update

The Zip share price will be in focus again on Thursday when the company releases its quarterly and full year update.

In respect to its full year performance, according to note out of Macquarie, its analysts are expecting Zip to report a 59.9% increase in revenue to $644.24 million in FY 2022.

And while it is unlikely to release an update on its earnings until next month, the broker has pencilled in an EBITDA loss of $201.8 million for the year.

The post Zip share price jumps 14% ahead of tomorrow’s update appeared first on The Motley Fool Australia.

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More reading

• How to beat the market with ‘boring’ ASX shares: fundie
• Has the Zip share price finally hit rock bottom?
• Is the Zip share price going to take off?
• What’s the outlook for ASX BNPL shares in FY23?
• Sezzle shares plunge another 16%, now down 60% in a week

Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc., Pointsbet Holdings Ltd, and ZIPCOLTD FPO. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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S&P/ASX 200 Index (ASX: XJO) lithium shares are flying out the door on Wednesday amid a dire warning from the chair of Tesla and the Tech Council of Australia.

Robyn Denholm has reportedly urged Australia to increase production of lithium-ion battery materials, telling the Clean Energy Summit a shortfall could put the brakes on action against climate change.

And the market may have heard the message loud and clear. ASX 200 lithium shares are among the most traded on the index on Wednesday.

Leading the charge is Lake Resources N.L. (ASX: LKE). More than 42 million of the company’s shares have swapped hands so far today. Pilbara Minerals Ltd (ASX: PLS) and Core Lithium Ltd (ASX: CXO) are also up there, with a combined 28 million shares in the pair traded.

Let’s take a closer look at the battery and technology insider’s warning of a lithium supply shortage.

ASX 200 lithium shares prove popular amid supply concerns

Denholm has reportedly put out a warning, saying the uptake of Tesla vehicles and batteries could soon outstrip the pace at which the company can source battery materials, the Australian Financial Review reports.

Of course, that could be good news for ASX 200 lithium shares – more demand for the mineral generally means greater profits for producers. However, it might be a major weight on the speed at which the world can face climate change.

“I can’t think of a technology that is more important than lithium-ion batteries right now,” Denholm said, courtesy of the AFR. “The world cannot build battery cells fast enough. It may be the rate-limiting actor for tackling climate change.

“To meet the challenge of climate change, this entire industry needs to scale at sprinting pace.”

That might mean more lithium mines, particularly for Australia. The nation is home to a large portion of the globe’s lithium mineral resources.

ASX 200 lithium giant Pilbara Minerals, mines one of the world’s largest hard rock lithium ore bodies in Western Australia. Meanwhile, Core Lithium is developing the Finniss Lithium Project in the Northern Territory.

But there’s likely more that could be done.

Denholm has reportedly called on state and federal governments to grant more lithium projects the tick of approval and noted opportunities for partnerships between public and private capital.

The post ASX 200 lithium shares get busy amid dire supply call appeared first on The Motley Fool Australia.

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More reading

• Up 4% in FY23, what’s next for the Pilbara Minerals share price?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why is the Lake Resources share price rallying 11%?
• ASX 200 midday update: BHP’s Q4 update, JB Hi-Fi delivers record result
• Here are the top 10 ASX shares today

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Netflix Inc (NASDAQ: NFLX) share price soared in the US after the company released quarterly results showing net income of more than $1.4 billion.

Netflix shares jumped 7.85% to $217.46 on the NASDAQ during after-hours trade. In Tuesday’s trading, Netflix shares climbed 5.61%. For perspective, the NASDAQ leapt 2.93% on Tuesday.

Let’s take a look at what Netflix reported today.

Netflix reports quarterly results

Highlights of the Netflix Q2, 22 results include:

• Total revenue of $7.97 billion
• Revenue jumped 1.3% on the previous quarter and 8.55% compared to Q2, 21
• Loss of 970,000 global streaming paid memberships
• Total of 220.67 million global streaming paid memberships
• Operating margin of 19.8%
• Net income of $1.441 billion, up 6.5% compared to Q2,21
• Diluted earnings per share (EPS) of $3.20, up from $2.97 per share in Q2,21

What else did Netflix report

Despite the loss of subscribers, Netflix said membership was “better than expected”. The company said it is in a position of strength.

Average revenue per membership (ARM) increased 7% year on year, excluding the impact of foreign exchange.

Revenue in the Asia Pacific region jumped 23% compared to the previous year, excluding foreign exchange, and is now almost as big as the company’s Latin America business.

Europe, the Middle East, and Africa revenue also climbed 13% year on year, while Latin America revenue rose 19% and US Canada revenue gained 10%.

Netflix added 1.1 million subscribers in the Asia Pacific region in the quarter, up from one million in the previous corresponding year.

The best Netflix movie in quarter two was Hustle, featuring Adam Sandler. This attracted 186 million hours of viewing. This was followed by Senior Year, starring Rebel Wilson, with 161 million viewing hours.

Netflix is also investing in animated features and building on non-English programming. Netflix said:

While we always have room to improve, we’re very pleased with how far we’ve come in providing so much satisfaction and enjoyment to our members.

What’s ahead?

Netflix wants to accelerate revenue growth and improve monetisation. The company is planning to add a new lower-priced plan with advertising in early 2023. This will be in addition to existing plans that are free of ads.

Netflix plans to roll this plan out in markets where advertising spend is high. Commenting on this initiative, the company said:

Our global ARM [average revenue per membership] has grown at a 5% compound annual rate from 2013 to 2021, so it makes sense now to give consumers a choice for a lower priced option with advertisements, if they desire it.

Netflix is also working on plans to monetise up to 100 million homes that are not paying for Netflix, despite using the services. Netflix added:

We know this will be a change for our members. As such, we have launched two different approaches in Latin America to learn more.

Our goal is to find an easy-to-use paid sharing offering that we believe works for our members and our business that we can roll out in 2023.

Share price snapshot

The Netflix share price has dived 62% in the past year, while it has lost 66% year to date.

However, in the past month, Netflix shares have soared nearly 18%. For perspective, the NASDAQ has dropped nearly 12% in the past year.

The post Why did the Netflix share price lift despite losing 970,000 subscribers? appeared first on The Motley Fool Australia.

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More reading

• The end of ‘Stranger Things’ might actually be a boost for Netflix
• Betting against Netflix now could be a big mistake
• Should you invest in stocks right now? These 2 charts say yes
• Better bear market buy: Netflix vs Amazon
• 3 reasons Netflix should bounce back in July

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netflix. The Motley Fool Australia has recommended Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Leo Lithium Ltd (ASX: LLL) share price is racing higher on Wednesday.

This comes after the lithium developer announced a debt facility update to the market.

At the time of writing, Leo Lithium shares are swapping hands at 44.5 cents, up 4.71%.

Leo Lithium completes debt funding package

Investors are rallying up the Leo Lithium share price following the company’s financing efforts.

According to its release, Leo Lithium advised it has secured an expandable US$40 million debt facility with Joint Venture partner Ganfeng Lithium Co.

The facility agreement puts Leo Lithium in a strong financial position to cover its share of the costs in developing the Goulamina Project. The first-stage development costs are estimated to be around US$255 million.

The Goulamina JV now has a debt and equity package of US$170 million.

By securing the funds, this completes Leo Lithium’s initial offtake marketing efforts and locks in all of spodumene product offtake from the first stage of the project.

Based in Mali, Goulamina is regarded as one of the world’s largest spodumene projects and the first of its kind in West Africa.

It’s forecasted that the mine will produce 506,000 tonnes of spodumene concentrate per annum, increasing up to 831,000 tonnes thereafter.

Early-stage development is underway and the first production is being targeted for the first half of 2024.

Leo Lithium managing director, Simon Hay commented:

Leo Lithium and Ganfeng are jointly developing Goulamina with plans to become one of the world’s largest spodumene concentrate producers.

The finalisation of the debt funding package from Ganfeng significantly de-risks development and means we are now able to fully focus on accelerating development work on the Goulamina Project as we jointly bring the Goulamina into production.

The accordion facility provides Leo Lithium with a further funding option, an important feature as the globe experiences broad inflationary pressures.

Leo Lithium share price snapshot

Since listing on the ASX board last month, Leo Lithium shares declined by around 35%.

This follows the demerger from Firefinch Ltd (ASX: FFX) back in April this year.

Based on today’s price, Leo Lithium has a market capitalisation of approximately $424.26 million.

The post Why is the Leo Lithium share price launching 5% today? appeared first on The Motley Fool Australia.

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More reading

• Why Beach, Cooper Energy, Leo Lithium, and Whitehaven Coal are dropping
• Why Cooper Energy, Lake Resources, Leo Lithium, and Zip shares are sinking
• Leo Lithium share price fails to roar and sinks 26% following demerger

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) is on course to record a very strong gain. The benchmark index is currently up 1.75% to 6,765.5 points.

Here’s what is happening on the ASX 200 today:

Megaport shares jump

The Megaport Ltd (ASX: MP1) share price is rocketing higher on Wednesday. As well as getting a boost from a rebound in the tech sector, the release of a strong quarterly update has got investors excited. Megaport reported a 13% increase in monthly recurring revenue (MRR) to $10.7 million and its first quarterly operating profit of $1 million.

Allkem’s quarterly update

The Allkem Ltd (ASX: AKE) share price is underperforming today after the lithium miner’s quarterly update disappointed. Although Allkem reported record quarters for its Mt Cattlin and Olaroz operations, its guidance for FY 2023 appears to have underwhelmed. Management is forecast a sizeable production decline from its Mt Cattlin operation next year.

Tech shares storm higher

The tech sector has been the place to be on the Australian share market on Wednesday. Investors have been piling into the sector following a very strong night of trade on the tech-focused NASDAQ index. Block Inc (ASX: SQ2) and Xero Limited (ASX: XRO) shares have been among the best performers and are helping to drive the S&P ASX All Technology index 4.4% higher at the time of writing.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Wednesday has been the Megaport share price with a 19% gain. This follows the release of the network as a service provider’s quarterly update. Going the other way, there are only a handful of shares in the red. One of those is the Pendal Group Ltd (ASX: PDL) share price, which is down 2.5%. This may be due to profit taking after a solid gain yesterday amid takeover speculation.

The post ASX 200 midday update: Megaport rockets, Allkem’s update, tech shares rally appeared first on The Motley Fool Australia.

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More reading

• Xero share price rises 8%: Can it keep climbing?
• Why is the Novonix share price launching 5% higher today?
• Pendal share price slides amid ‘potential transaction’
• Megaport share price explodes 38% on June quarter profit
• Allkem share price falls despite record quarter

Motley Fool contributor James Mickleboro has positions in Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc., MEGAPORT FPO, and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc. and Xero. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Wilson Asset Management (WAM) is a fund manager that manages billions of dollars across various listed investment companies (LICs). It often likes to go hunting for ASX All Ordinaries (ASX: XAO), or All Ords, shares.

The company manages one of the largest LICs on the ASX, WAM Capital Limited (ASX: WAM). Another is WAM Leaders Ltd (ASX: WLE), which looks at the bigger ASX shares.

Each month, the fund manager likes to tell investors what’s going on in its portfolio.

Sometimes it outlines an investment that has gone well (and could keep going well), whereas other examples may be something that has seen a decline but could still be an opportunity.

With that in mind, let’s look at two of the latest All Ords ASX shares that WAM thinks are opportunities.

Smartgroup Corporation Ltd (ASX: SIQ)

WAM described Smartgroup as a business that provides salary packaging, fleet management, and a range of other employee benefit services for organisations across Australia.

The fund manager noted the Smartgroup share price suffered in June after the company announced the Department of Education and Training Victoria would not be renewing its contract.

WAM noted this was a rare occasion where the company was unsuccessful against its competitors. The contract is expected to end in the coming months with an estimated earnings impact of “less than 5%” in the 2023 calendar year.

While this announcement hurts short-term earnings and market sentiment, WAM pointed to a number of reasons to remain positive. Those factors were: a recovery in new vehicle supply, a robust pipeline of novated leases, and a cost-out targeted under the company’s smart future program. All are expected to underpin Smartgroup’s earnings growth over the medium term, WAM said.

Carsales.Com Ltd (ASX: CAR)

The fund manager describes Carsales as a business that operates the largest online automotive, motorcycle, and marine classified advertising business in Australia. It also operates Trader Interactive (TI), a US-based marketplace business that has a leading position in the recreational vehicle, powersports, commercial truck, and equipment markets.

WAM noted that, in June, the All Ords ASX share announced it would exercise its call option to acquire the remaining 51% interest in TI that it doesn’t already own for $1.2 billion. This will be funded by a capital raising.

The transaction is expected to be completed in the first quarter of FY23, with the acquisition providing “immediate low double-digit earnings per share (EPS) accretion”, including tax and interest benefits.

WAM likes the deal because owning all of the TI business is expected to unlock a “range of additional growth options” for the business.

The company also provided a trading update during June 2022, with FY22 earnings guidance in line with analyst expectations.

Despite uncertainty in the wider economic environment, Carsales noted “strong momentum” across all markets going into FY23. WAM thinks the All Ords ASX share’s earnings will be more resilient than the market is expecting.

The post 2 All Ords ASX shares this fund manager thinks are compelling appeared first on The Motley Fool Australia.

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More reading

• 3 ASX All Ordinaries shares leaping 10% or more today
• Fundie reveals 2 indicators the bear market may be coming to an end
• Why this expert tips a ‘range of additional growth opportunities’ for Carsales shares
• 3 ASX All Ords shares tumbling into the weekend
• Sezzle shares plunge another 16%, now down 60% in a week

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended SMARTGROUP DEF SET. The Motley Fool Australia has recommended carsales.com Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Equity markets have been southbound for a while now, and last month, the S&P 500 officially dropped below bear market territory as defined by a 20% or more decline from its most recent high. Even the most battle-tested investors can panic in situations like these; it’s only human to do so. 

That’s especially the case considering the state of the economy. Some analysts have predicted that a recession could be on its way, and with inflation at 40-year highs, things could get even worse for the stock market. With that said, there are important missteps investors should avoid in a bear market. Here are just two examples.

Mistake #1: Constantly checking your portfolio

When stocks are struggling, it can be tempting for investors to constantly check how the performance of their portfolios stacks up against that of the broader market — or if, by any chance, they are managing to defy the sell-off. The temptation is understandable but a bit unwise. In a bear market, most investors will be in the red. But until one presses the sell button, losses remain unrealized.

Peeking into the performance of the stocks you own regularly can increase anxiety and provoke panic-selling. Of course, that would be a mistake for investors with a long-term mindset. The market will recover — history tells us that it always does. And provided the stocks you own are those of quality companies, they will bounce back too. Staying the course is generally the correct thing to do.

Not being obsessed with how your portfolio performs helps you do just that. 

Mistake #2: Avoiding buying stocks 

For opportunistic investors, downturns are practically the stock market equivalents of a “sale” sign on the window of a retail store. Sell-offs don’t discriminate. Even robust companies find themselves in the red, creating the perfect opportunity for you to scoop them up on the dip.

Of course, investing best practices still apply. It’s essential only to invest money that you can afford to lose, particularly if the downturn in question is accompanied by economic troubles (as we are currently experiencing).

Furthermore, just because a stock is down doesn’t mean it’s worth buying at its current levels. Doing your due diligence before pressing the buy button is always critical. But if you play your cards right, bear markets can help you increase your returns in the long run.

With that in mind, here’s one beaten-down stock worth buying now: Moderna (NASDAQ: MRNA). The biotech is down big this year, but it is well-positioned to rebound eventually. Here’s why. 

Down but not out

One reason Moderna is down recently — besides the broader sell-off — is that its prospects seem uncertain to some investors. What will the COVID-19 vaccine market look like after this year? Will Moderna continue to generate strong sales from its sole product on the market in 2023 and beyond?

These are reasonable questions, but Moderna seems to have the means to bounce back from a potential drop in sales of its coronavirus vaccine after this year. The company has a pipeline full of promising programs and enough funds to bring at least a couple of brand new products to market (without resorting to dilutive financing) — two key things biotech companies need to be successful.

Moderna is running several non-coronavirus-related phase 3 clinical trials, including a potential vaccine against the flu and two others against respiratory syncytial virus (RSV) vaccine and the cytomegalovirus, neither of which has an existing, approved vaccine. Additionally, it has plenty more programs in phase 2 or phase 1 testing.

The biotech ended the first quarter with $19.3 billion in cash and cash equivalents, more than double the $8.3 billion it had as of the end of Q1 of the previous fiscal year. Moderna’s shares have lost 35% of their value this year. But I believe patience will be rewarded for those who get in now. 

Play the long game 

Bear markets aren’t fun, but investors can make the best of them by avoiding the unnecessary stress of constantly checking stocks and taking advantage of the opportunity to buy great stocks like Moderna or many other companies that fell along with the rest of the market. Trading may be a short-term game, but investing is a long-term one. Focusing on that can help investors get through these challenging times.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 2 mistakes to avoid in a bear market appeared first on The Motley Fool Australia.

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More reading

• 3 things about Moderna that smart investors know

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Moderna Inc. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Northern Star Resources Ltd (ASX: NST) share price is edging higher on Wednesday.

This comes after the company released its operational and financial results to wrap up the fourth quarter of FY22.

At the time of writing, the Australian gold miner’s shares are up 0.59% to $6.80. Earlier, they were in the red before edging back into the green.

Let’s take a look to see how Northern Star performed over the 3-month period.

What did Northern Star report?

For the quarter ending 30 June, Northern Star delivered a strong result whilst managing current macroeconomic challenges.

Gold sold during the three months came to 402,069 ounces (oz) at an all-in sustaining cost (AISC) of $1,650/oz.

For FY22, the company sold a total of 1,561koz of gold at an ASIC of $1,633/oz. This is in line with the guidance range of 1,550-1,650koz at an ASIC of $1,600-1,640/oz.

Here’s a breakdown of Northern Star’s three operating assets:

Kalgoorlie’s performance was in-line with expectations. Its mines sold 213,310oz of gold at an AISC of A$1,791/oz.

On the other hand, Yandal lifted its performance to 121,601oz gold sold at an AISC of A$1,403/oz.

And lastly, Pogo delivered above second-half FY22 expectations with 67,158oz gold sold at an AISC of US$1,184/oz.

Northern Star advised it has a strong balance sheet with cash, bullion and investments of $812 million at 30 June.

Nonetheless, it appears investors are unfazed by the exceptional result, sending Northern Star shares in reverse.

The company is targeting FY23 guidance of 1,560-1,680koz gold sold at an AISC of A$1,630-1,690/oz. However, this will be mostly weighted towards the second half due to the scheduled ramp up of the Thunderbox mill expansion.

What did management say?

Managing director of Northern Star, Stuart Tonkin commented:

I am extremely proud of our team for delivering our FY22 guidance in a year that has seen extraordinary challenges. Further, we have maintained reliable operations over the past year and protected the health and wellbeing of our team.

The first full year of operating as the enlarged Northern Star has provided us a true understanding of the opportunities and requirements of our assets, particularly in this inflationary environment, and resulted in us increasing our FY23 capital budget. Our responsible approach to growth means we will be disciplined in how and when we spend the budget, at all times focused on maximising returns.

… Northern Star is in a strong position to deliver a successful FY23.

Northern Star share price snapshot

Over the last 12 months, the Northern Star share price has fallen 33% as the price of gold continues to wane.

Currently, the yellow metal is fetching at US$1,711 an ounce, down from its US$2,050 highs earlier in the year.

Northern Star is ASX’s second largest gold company with a market capitalisation of approximately $7.92 billion.

The post Northern Star share price edges higher following ‘strong’ quarterly performance appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why is the Northern Star share price trading at near 4-year lows?
• 5 things to watch on the ASX 200 on Monday
• Why is the Newcrest share price slipping to a new 52-week low on Friday?
• 2 ASX 200 mining shares performing today amid a volatile gold price

Motley Fool contributor Aaron Teboneras has positions in Northern Star Resources Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Paladin Energy Ltd (ASX: PDN) share price is off to the races today.

Shares in the ASX uranium explorer and producer closed yesterday at 62 cents and are currently trading for 66.5 cents, up 7.26% in morning trade.

So, what’s moving the Paladin Energy share price higher?

What did the uranium producer report?

Paladin closed lower yesterday amid the wider market selloff. But it looks like investors may be snapping up shares today based on yesterday’s report that the company is returning its Langer Heinrich Mine, located in Namibia, to production.

Management said the decision to restart the mine was supported by strong uranium market fundamentals. The Paladin Energy share price could be getting a lift from their expectations the mine will begin producing in the March quarter of 2024.

Paladin has appointed the ADP Group to provide engineering, procurement, and construction management services, and reported that mobilisation of the project workforce is “well advanced”.

Citing inflationary pressure across its project supply chain, Paladin said the total project capital expenditure has increased to US$118 million, up from, previous guidance of US$87 million.

Paladin will provide 100% of the project funding, saying it will source priority loans if required. These will be repaid in priority to all outstanding shareholder loans. The company said it had US$177 million in unrestricted cash as at 30 June 2022, leaving it “well positioned” to deliver its first production from the Langer Heinrich Mine, along with funding its ongoing uranium exploration and marketing activities

Its non-project 2023 financial year cash expenditure guidance is US$14.7 million.

Commenting on the mine restart, Paladin CEO Ian Purdy said:

With the strength of the company’s uranium offtakes and the continuing strong uranium market fundamentals, Paladin has made the decision to return the globally significant Langer Heinrich Uranium Mine to production…

The Langer Heinrich Mine remains a low risk, robust, long-life operation that is poised to take advantage of the improving uranium market conditions and deliver sustainable value creation for all our stakeholders.

Paladin Energy share price snapshot

Although struggling in 2022, the Paladin Energy share price remains up 52% over the past 12 months. That compares to the 8% loss posted by the All Ordinaries Index (ASX: XAO) over that same period.

The post What is driving the Paladin Energy share price 7% higher today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Xero Limited (ASX: XRO) share price has been a positive performer today.

The cloud accounting platform provider’s shares were up as much as 8% to $89.28 at one stage.

The Xero share price has since pulled back a touch but remains up over 5% to $87.35 at the time of writing.

Why is the Xero share price rising today?

Investors have been bidding the Xero share price higher today amid a rebound in the tech sector.

This follows a particularly strong night on Wall Street after investors started to bet that markets have now bottomed. This improved investor sentiment is being driven by the ongoing US reporting season, which has seen stronger-than expected corporate earnings.

The tech sector has been benefiting most, with the S&P/ASX All Technology Index rising by a sizeable 4% at the time of writing.

Given how a large number of tech shares, such as Xero, have been beaten thoroughly down this year, investors appear to be piling in on the belief that there are bargains galore in the sector.

And it isn’t hard to see why. Despite continuing its strong growth in FY 2022, the Xero share price is down 40% since the start of the year. That’s even after today’s gain.

Can its shares keep rising?

One leading broker that still sees plenty of room for the company’s shares to climb from here is Goldman Sachs.

A recent note reveals that its analysts have a buy rating and $113.00 on its shares.

Based on the current Xero share price, this implies potential upside of almost 27% for investors over the next 12 months.

The post Xero share price rises 8%: Can it keep climbing? appeared first on The Motley Fool Australia.

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More reading

• Why did the Xero share price have such a lousy session today?
• Why cheap hamburgers could give beginner ASX share investors food for thought
• Experts name 2 blue chip ASX 200 shares to buy
• What are brokers saying about the Xero share price?
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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